An additional 2,706 MW are currently under construction across France, Sweden, the United Kingdom, Germany, and Ireland. Early-stage pipeline projects amount to 17,513 MW, now also extending to Spain and Portugal, indicating that Southern Europe is increasingly attracting large-scale developments, supported by infrastructure improvements and strong investor interest.

Tiago Cortez, I&L Capital Markets Associate at Savills, comments: “Portugal offers unique conditions for establishing new data centres, notably due to one of the highest proportions of renewable energy production in the European Union, energy prices below the European average, and one of the world’s best fibre optic networks. This positions the country as a key gateway for many submarine cables interconnecting continents via high-capacity data networks. With the exponential growth of Artificial Intelligence and the resulting need for higher-capacity infrastructure, Portugal is becoming an increasingly prominent destination in investment plans for this sector over the coming years.”

Regarding data centre rental values, after three years of rising average rents, prices appear to have stabilized across most leasing categories in the EMEA region. However, further increases are expected in 2025, driven by a combination of growing demand, rising energy costs, and ongoing construction inflation.

The sector is witnessing a shift in capital deployment strategies. Investment volumes have increased, with a notable rise in joint ventures between data centre operators and institutional investors. The entry of new operators has intensified competition and stimulated business activity. Real estate players are increasingly seeking exposure to the sector by launching or acquiring platforms. As energy access becomes more challenging, landowners are recognising the inherent value of their sites for data centre use, further complicating acquisition dynamics.

Cameron Bell, EMEA Data Centre Advisory Director at Savills, observes: “With portfolios becoming increasingly capital-intensive, investors are exploring creative deal structuring options. This may include IPOs, spin-offs, or asset-level syndication strategies, enabling multiple investors to participate in large-scale developments or share exposure to entire portfolios. The investment market is becoming more sophisticated, with liquidity considerations starting to reshape how deals are structured and capital is allocated.”

Lydia Brissy, Director in Savills European Commercial Research team, states: “The Artificial Intelligence market in Europe is poised for exponential growth, which will further accelerate the demand for rapid data centre development. Statista forecasts that the European AI market size will reach approximately €52.94 billion by the end of 2025, with a compound annual growth rate (CAGR) of 26.27%, reaching €215.93 billion by 2031. This trajectory underscores the critical importance of infrastructure development.